sec concludes investigation into inotiv, no enforcement action planned

Inotiv, Inc. (NASDAQ:NOTV) announced that the U.S. Securities and Exchange Commission (SEC) has completed its investigation into the company’s importation practices of non-human primates from Asia. According to a press release, the SEC’s Division of Enforcement has decided not to recommend any enforcement action against Inotiv based on the information available as of June 2, 2025. The news comes as the company’s stock has shown strong momentum, posting a 22% gain over the past week, according to InvestingPro data.

The investigation, which began with a voluntary request from the SEC in May 2023, focused on Inotiv, Envigo Global Services, Inc., and Orient BioResource Center, Inc. It examined whether their importation practices complied with the U.S. Foreign Corrupt Practices Act from December 1, 2017, to the present. The SEC issued a formal order of investigation in March 2024 and provided supplemental document requests to Inotiv in April 2024. InvestingPro analysis shows the company operates with a significant debt burden, with a debt-to-equity ratio of 2.86.

Inotiv, a company based in West Lafayette, Indiana, operates in the commercial physical and biological research sector. The company was previously known as Bioanalytical Systems Inc. before changing its name in 1997.

The conclusion of the SEC investigation without recommended enforcement action is significant for Inotiv, as it removes potential legal uncertainties surrounding its importation practices. The company’s shares are traded on the Nasdaq Stock Market under the ticker symbol NOTV.

This information is based on a statement from Inotiv’s 8-K filing with the SEC.

In other recent news, Inotiv Inc. reported a net loss of $0.44 per share for the second quarter of fiscal year 2025, which was better than the projected loss of $0.625 per share. The company’s revenue for the quarter reached $124.3 million, marking a 4.4% increase from the previous year, although it fell slightly short of the expected $125.13 million. Notably, Inotiv’s adjusted EBITDA improved significantly to $8 million, up from $3.1 million in the prior year. Jefferies analysts have responded to these developments by raising the price target for Inotiv’s stock to $2.50 from $1.50, citing expectations of 20% annualized revenue growth and improved EBITDA margins. However, they maintained a Hold rating due to concerns over optimistic margin assumptions and debt maturity challenges. Inotiv’s leadership team has extensive experience in gene toxicology and biotherapeutics, which Jefferies believes strengthens the company’s market position. The company also settled a three-year-old litigation case for approximately $7.6 million, which contributed to the quarter’s financial results. Despite these positive developments, Inotiv did not provide formal financial guidance for the rest of the fiscal year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.